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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (774)	2/21/1998 9:17:00 AM
From: David Luton	Read Replies (1) \| Respond to of 8010

Subject: Is Mr. Buffet Leasing Back Silver I am not sure of the mechanics of this in the silver leasing. In real estate they do a back-to-back deal so that the physical possession never changes. (Ownership changes but the leaseholder stays on as a tenant.) Buffet has already signalled his willingness to entertain this. To me something like this must be the reason for two opposing trends: a tight silver supply but only a relatively slight increase in silver prices if any since the announcement came out. Bottom line is that something like this must be happening. However remember the law of gravity. It will win in the end. At these rates the shorts (ie. the leaseholders) are getting killed. As soon as they get the silver they will close out the lease. Death takes a little longer however if it is the death of a thousand cuts. Thus prices may tend to rise more slowly. For myself I am settling in for a marathon not a hundred yard dash. I am glad now I concentrated on companies that are or shortly will be producing the real thing. I think that they will be the major beneficiaries but first we need 3 - 6 months of higher silver prices before it shows up in their balance sheets and resulting stock prices. Dave